Gold Technical Precious Metals (2011-11-18)

By IBT Staff Reporter On 11/18/11 AT 2:29 AM

Morning Report

The metal has collapsed aggressively respecting our suggested bearish harmonic outlook, opening the door towards the second technical objective of the bearish harmonic AB=CD pattern. The second technical target of the pattern resides at 61.8% Fibonacci retracement of CD leg at 1680.00, while yesterday's long black candlestick along with the negativity appearing on Stochastic and AROON argues us to say that the metal may visit 76.4% Fibonacci seen on the provided daily graph. The critical support zones around 1703.00-1702.00 should be cleared to confirm the resumption of the bearish rally. Conversely, areas around 1780.00-1785.00 should to keep our scenario valid.

The trading range for today is among the key support at 1626.00 and key resistance now at 1785.00.

The general trend over the short term basis is to the upside, targeting $ 1945.00 per ounce as far as areas of 1475.00 remain intact with weekly closing.